A recent AP story details the plan of Toys R Us to readopt layaway for the holiday season. And I say HOORAYYYYYY. Too over-the-top? Sorry. Yeah.

Layaway is a tool used by retailers to keep customers buying during tough credit times. The practice started back in, you guessed it, the Great Depression. Customers make a down payment on an item, and then continue to make payments on the item prior to taking possession of it when it is paid in full. It is quite the alternative to taking possession of an item prior to actually owning it. Back in the day (1980s), layaway was a huge strategy for retailers such as Marshalls and TJ Maxx. But the strategy disappeared when retailers figured out that they could instead “sell” you a store credit card, give you the item now, and then charge you ridiculous amounts of interest. Not only that, but since the customer had possession of the item, they were much more likely to make the payment on a non-standard payment schedule (read: late). That is why layaway disappeared. Don’t get it twisted.

And this is why layaway has reappeared. Consumers aren’t qualifying for the revolving credit that stores offer, therefore stores are turning to their old friend, layaway. And as you might have guessed, layaway has returned with a newfound sense of benevolence. Hooray, big business is still allowing consumers to buy things they can’t afford (Google search: sarcasm). But I would take layaway any day, over delay of pay.

About Green Candy™

Green Candy™ (www.GreenCandy.com) is an online financial assessment tool that helps Gen Y-ers and Millennials get on the right financial track before the “debt hits the fan.” Introduced by radio personality, comedian and financial expert Pete the Planner (www.PeteThePlanner.com), Green Candy’s ™ various “pods” allow users to assess their financial health and competency in common areas such as Debt, Budgeting, Investing, Charity, Risk Management and Major Purchases, as well as in areas unique to Gen Y. A subsequent series of targeted worksheets, podcasts, tip sheets, and action plans guides them to the financial promise land. Green Candy™: Get in control before the debt hits the fan.

About Pete the Planner

Pete the Planner (www.PeteThePlanner.com) is expert financial planner Peter Dunn’s super-saving alter ego. Peter is an award-winning comedian and rising star in the financial world. Named one of “Indy’s Best and Brightest” in finance in 2007 and media in 2009 by KPMG, Peter was also declared one of NUVO magazine’s “30 under 30 to Watch in the Arts” for comedy. Peter is the author of What Your Dad Never Taught You About Budgeting (2006) and is the host of the popular radio show Skills Your Dad Never Taught You on News Talk 1430 (WXNT). He blogs regularly at www.petetheplanner.com/blog. Pete appears regularly on Fox News and Fox Business as well as various CBS stations. His newest book, 60 Days to Change, is due out in November.

After tons of email asking whether I thought MLM companies were legit or a scam, I decided to find out for myself. I have been working on a story on Multi-Level Marketing (Network Marketing) for a couple of months now. I have studied 10 MLM companies and their compensation structures. I have interviewed salespeople, ex-salespeople, and a CEO of an MLM. I have learned a tremendous amount of dos and don’t, and I’m going to share them all with you.

Starting Oct 4th at 11 am on News Talk 1430 AM, I will unravel the world of mulit-level marketing. There is one thing that I am sure of, this is sure to cause controversy. I have been banned from sales rallies, I have been emailed numerous “warnings”, and I have even made some unlikely friends.

I will be previewing my story on Abdul in the Morning (1430 WXNT Indy) on Oct 1 at 8:30 am and Smiley in the Morning at 8:50 am (99.5 WZPL Indy). Tune in.

My neighborhood is having a community Garage Sale this weekend. I saw the sign on my drive to work. I never participate in these sorts of things because I’m generally freaked out by strangers milling around my garage. However, I decided that I would participate this weekend in the name of (financial) science. It’s Eat What You Earn Weekend. Okay, I made that up. But why not?

We are going to use the money we make in this impromptu Garage Sale to pay for dinner on Saturday night. If we make $20, then we eat cheap. If we make $150, then I’ll be calling a cab….kidding.

Do it.

About Green Candy™

Green Candy™ (www.GreenCandy.com) is an online financial assessment tool that helps Gen Y-ers and Millennials get on the right financial track before the “debt hits the fan.” Introduced by radio personality, comedian and financial expert Pete the Planner (www.PeteThePlanner.com), Green Candy’s ™ various “pods” allow users to assess their financial health and competency in common areas such as Debt, Budgeting, Investing, Charity, Risk Management and Major Purchases, as well as in areas unique to Gen Y. A subsequent series of targeted worksheets, podcasts, tip sheets, and action plans guides them to the financial promise land. Green Candy™: Get in control before the debt hits the fan.

About Pete the Planner

Pete the Planner (www.PeteThePlanner.com) is expert financial planner Peter Dunn’s super-saving alter ego. Peter is an award-winning comedian and rising star in the financial world. Named one of “Indy’s Best and Brightest” in finance in 2007 and media in 2009 by KPMG, Peter was also declared one of NUVO magazine’s “30 under 30 to Watch in the Arts” for comedy. Peter is the author of What Your Dad Never Taught You About Budgeting (2006) and is the host of the popular radio show Skills Your Dad Never Taught You on News Talk 1430 (WXNT). He blogs regularly at www.petetheplanner.com/blog. Pete appears regularly on Fox News and Fox Business as well as various CBS stations. His newest book, 60 Days to Change, is due out in November.

Be sure to watch Pete the Plannet in Fox News at 2:45 PM est today. I’ll be talking about the huge uproar over Overdraft fees. Find out who is to blame.

Tell your friends. Tell your family. Tell your clergy (sorry, I got carried away)

I am obsessed with spending addictions this week. I don’t know why. I talked about it on my radio show, I talked about it on Your Time with Kim Iverson, and I talked about it on The Smiley Morning Show. Many people are compulsive spenders, but that doesn’t mean that they are addicted. I interviewed Harvard trained psychotherapist, Carleton Kendrick, on my radio show. He said that even though a spending addiction is not a physiological addiction, it’s still a serious issue.

I have compiled a list of symptoms that you should consider when trying to self-diagnose.

1. Do you lie to cover up your purchases? Lying about money is a serious problem, and can really damage your relationships.

2. Are your relationships struggling? This could be a sign of your halitosis, but then again it could be a side-effect of your terrible spending habits.

3. Do you just store the stuff you buy? Spending addiction is about the purchase, not about what you purchasing. Therefore, many times addicts will buy things that they don’t  even need. Thus, storage.

If you think you have a spending problem, you should really seek help.

About Green Candy™

Green Candy™ (www.GreenCandy.com) is an online financial assessment tool that helps Gen Y-ers and Millennials get on the right financial track before the “debt hits the fan.” Introduced by radio personality, comedian and financial expert Pete the Planner (www.PeteThePlanner.com), Green Candy’s ™ various “pods” allow users to assess their financial health and competency in common areas such as Debt, Budgeting, Investing, Charity, Risk Management and Major Purchases, as well as in areas unique to Gen Y. A subsequent series of targeted worksheets, podcasts, tip sheets, and action plans guides them to the financial promise land. Green Candy™: Get in control before the debt hits the fan.

About Pete the Planner

Pete the Planner (www.PeteThePlanner.com) is expert financial planner Peter Dunn’s super-saving alter ego. Peter is an award-winning comedian and rising star in the financial world. Named one of “Indy’s Best and Brightest” in finance in 2007 and media in 2009 by KPMG, Peter was also declared one of NUVO magazine’s “30 under 30 to Watch in the Arts” for comedy. Peter is the author of What Your Dad Never Taught You About Budgeting (2006) and is the host of the popular radio show Skills Your Dad Never Taught You on News Talk 1430 (WXNT). He blogs regularly at www.petetheplanner.com/blog. Pete appears regularly on Fox News and Fox Business as well as various CBS stations. His newest book, 60 Days to Change, is due out in November.

Guest post by Jim Huller, president of Maximum Wealth Advisors

If you’re like a lot of people out there you have decreased your spending and accumulation of debt, while increasing the amount you have in savings.  A few years ago the national savings average dropped down to a negative percentage of income, meaning that the average person owed more than they had. Today out of necessity the average American has become more frugal, but it wasn’t that long ago that spending big was in vogue.

The mentality of “spend it if you got it”, led to those who didn’t to borrow it.  Now that the pendulum has swung back to thriftiness – the kind advocated by Green Candy.com – I turn today to the classic tale by Bastiat, with a modern twist, for the wisdom of saving.

Picture two friends, one a spendthrift (Purchasing Fanatic Pete) and the other a prudent man (Coupon Clipping Chip), each of whom will have an annual income of $50,000.  Pete has won the lottery, while Chip has inherited his money.

Pete is a big spender, and like Plies, he wants you to know it.  He believes if you don’t spend ALL of your money, you will add to unemployment.  Who knew spending could be so fun and patriotic at the same time?  Purchasing Fanatic Pete loves to go to all the clubs, where he can make it rain.  Of course, he has “his people” with him, and showers them with the latest gadgets from Circuit City and Sharper Image; he gives expensive gifts to his friends to “show some love” or “spread the wealth”.

To live large, Purchasing Fanatic Pete has to dip into his capital. But so what? If saving is a sin, dissaving must be a virtue; and in any case he is simply making up for the damage being done by the saving of his tightwad friend Coupon Clipping Chip.

Everyone knows and loves Pete.  Coupon Clipping Chip though, isn’t so well known. He rents videos from Netflix and drives a Toyota.  Whereas Pete spends all of his $50,000 (and then some), Chip lives modestly and only spends half of his $50,000, and banks the rest.  Since most people only see what’s in plain view, they assume Chip is adding less than half as much to employment as Pete and the other $25,000 is as useless as if it wasn’t there.

Of Chip’s $25,000 leftovers, his short-term savings goes into the bank, allowing the bank to lend it to businesses on short term for working capital.  With his long-term savings Chip invests his money in stocks, bonds, or real estate.  When Chip’s money is invested (directly or indirectly) it is used to buy or build capital goods—houses or office buildings or factories or ships or trucks or machines.  All of these projects puts as much money into circulation, and adds to employment, as much as Pete’s spending sprees do.

“Saving,” is another form of spending. The difference here is that the money is turned over to a corporation to spend on means to increase production, which is what leads to lasting employment. But most people don’t see this activity directly, and only notice the big tips our friend Pete hands out.

A dozen years roll by and Purchasing Fanatic Pete is bankrupt.  He returns his Hummer to GM (who also did a poor job of handling its business), but is unable to return his worthless trinkets to the stores he used to patronize – they’re gone now.  Pete muddles through town, saying “I used to be somebody”; he is viewed as a failure.  He turns to begging from Chip, and GM goes begging from the government.

Meanwhile Chip has continued his spending and savings regiment, and is not only providing more jobs than ever, (because of his income through investment has grown), but his investments have helped to provide better-paying and more productive jobs. His capital wealth and income are greater because of it.

Coupon Clipping Chip has added to the nation’s productive capacity and Purchasing Fanatic Pete has not.  Therein lies the problem with our current state of affairs: we’ve had too many Petes and not enough Chips.  Now that the party is over, what we need is a return to sensible economic policies – we need to encourage productivity and savings.  We also need to teach the next generation.

A new article in the Wall Street Journal suggests that college students are borrowing more money than ever before. Students are not only borrowing more money, but more students are borrowing in general. Per the Journal, this is having more severe implications than just the obvious burden of debt. Students are not buying homes or starting families as soon as they use to. This is causing ripples in the macro-economy.

In addition to the debt concerns, the article suggests that colleges and universities are misreading the situation as a whole.

Also, the rising levels of borrowing may ironically be contributing to the accelerating cost of college, say some college-finance experts. Loans can give colleges an artificial sense of a family’s ability to pay tuition. To some extent, that false sense of security gets built into the assumptions schools make when setting prices, say experts. The idea is that as prices rise, families borrow more and more, spurring prices to rise further, which in turn requires more borrowing.

Ohhhh SNAP!!! I was right. In a blog earlier this week, I suggested that IU is missing the boat with their “tuition credits” solution. Their system gives a “discount” to full time B or better students. This practice is short sited, and it will only serve to put the average student at a bigger disadvantage. 

You don’t have to agree with me, but if you don’t…take it up with the WSJ.

And I’m out.

Over the last few years I have developed a series of hypothetical questions that I consistently ask myself. While this characteristic is congruent with someone that is on the verge of institutionalization, it is also responsible for my unique form of financial advice. If I am going to help my generation get a grasp on their money lives, then I need to recreate a process of financial discovery. I strongly believe that we, as a financial community, need to hit the reset button. We have been advising every single generation, for the last several decades, the exact same way.

But here is the (not so) harsh reality. Retirement and financial independence will he completely different for us than it is for our predecessors. The main culprit in this forced change is our: health. We are going to live a helluva lot longer than our parents. It is unrealistic to believe that we can work half our lives, only to not work the other half. I don’t want to be the one to break this to you (it should be someone like Oprah or Ryan Seacrest), but you are going to live to 100. You might as well photoshop wrinkles on your senior picture just to get used to it. You need to start switching your financial thinking to adjust to your newly discovered longevity.

Ah, yes…I had a point, and here it is. Why not put yourself on the road to retirement right now? This topic is immense enough to write a book, alas I’m going to condense it down to a couple of paragraphs. Our “retirement” is going to consist of doing a job that you are comfortable doing until the day you die. It’s all about redefining your passions, skills, and work ethic. You don’t want to work that 60 hour per week middle management job? Cool with me, just find something else that you want to do. The limiting factor, of course, is your income needs. Your career decisions have, and always will be dependent on your income needs. Unless you decide to eliminate that factor. 

I swear to you, dear friend, that I have a point, and it’s right around the corner. Stick with me. How much money would you need to make for you to walk away from your job and do something that you enjoy for the rest of your life? There are a number of factors that figure into your ability to answer this question:

1. Is your current job the final solution? It’s quite possible that your current job is a job that you’re passionate about. It is a job that you can continue to work some way, shape, or form into retirement. This would be great, and you are well on your way to understanding how our “retirement” will be different.

2. You should accept less. Do you want to know how you know whether you have answered the income question correctly? You should be willing and able to accept less money to do a job that you truly enjoy. Why? Because, as will be true when you retire, you will finally put your needs and wants into perspective once you have chosen your final career. In order to live the retirement lifestyle that we will be faced with, you will have to live on less money.

3. You should regularly ask yourself the “how much to quit” question, and the dollar amount should consistently decrease. Look, I already know that I’m asking a lot of you. I’m asking you to accept less money in a time when everyone is looking for more money. And now I’m asking you to settle for less money every time that you ask yourself this question. I believe that you will finally have the right mindset to act on this hypothetical, once that your income needs start to decrease. You will have accepted this concept as reality, and you are closer to being prepared to live it. 

I consistently ask myself this major question. And I can honestly tell you that my income needs have consistently decreased. If you are currently in a career that doesn’t “do it for you”, then start asking the tough questions. The hardest part isn’t even decreasing your income needs. The real challenge is finding what you truly love, once you find that you will easily be able to decrease your income needs (or wants).

About Green Candy™

Green Candy™ (www.GreenCandy.com) is an online financial assessment tool that helps Gen Y-ers and Millennials get on the right financial track before the “debt hits the fan.” Introduced by radio personality, comedian and financial expert Pete the Planner (www.PeteThePlanner.com), Green Candy’s ™ various “pods” allow users to assess their financial health and competency in common areas such as Debt, Budgeting, Investing, Charity, Risk Management and Major Purchases, as well as in areas unique to Gen Y. A subsequent series of targeted worksheets, podcasts, tip sheets, and action plans guides them to the financial promise land. Green Candy™: Get in control before the debt hits the fan.

About Pete the Planner

Pete the Planner (www.PeteThePlanner.com) is expert financial planner Peter Dunn’s super-saving alter ego. Peter is an award-winning comedian and rising star in the financial world. Named one of “Indy’s Best and Brightest” in finance in 2007 by KPMG, Peter was also declared one of NUVO magazine’s “30 under 30 to Watch in the Arts” for comedy. Peter is the author of What Your Dad Never Taught You About Budgeting (2006) and is the host of the popular radio show Skills Your Dad Never Taught You on News Talk 1430 (WXNT). He blogs regularly at www.petetheplanner.com/blog. Pete appears regularly on Fox News and Fox Business as well as various CBS stations. His newest book, 60 Days to Change, is due out in September.

Have you ever been in such a financial bind that you are forced to rack your brain for desperate solutions? If you haven’t, you will. I’m not trying to ruin your day, I’m just stating the important facts. No matter how much money that you have, you will someday (if you haven’t already) be forced to scramble. Millionaires are sent scrambling everyday to cover financial obligations. College kids all over the planet are sent scrambling every single day to make sure that they have enough money in their checking accounts to cover a late night “run for the border”.

How do your backup plans flow through your head? If you need more money than you have, how would you react? Would you go into debt? Would you get a second/third job? Or, would you call your family and friends? Many people choose the family and friends route because it is the least painful to the borrower. The other options (get another job, or go into debt) are less than ideal for the person in trouble, but “borrowing” from a family member or friend creates financial shrapnel. 

Everyone has money problems. Everyone. Your parents do, their parents do, and their parents….are dead. See, so you either have money problems or you are dead. But, I digress. Your parents (should) have more money than you, but they have bigger financial problems that, many times, they have never taken the time to understand. You want numbers?

Let’s say that you are 25, and your parents are 50. Your parents have a household income of $120k per year, and your income is $45k per year. Your parents have $357k to their name, and you have $1k to yours. They are in a much better financial position than you, but they have to be because they have some major stuff coming up: retirement, healthcare, and prescription costs. I’m just being real. I see it everyday. You are welcome to tell me how your situation is different than this, but most likely it is some derivation of my example.

Let’s assume that you need to be “bailed out” of some weird financial situation. You need to pay off some debt fast. You need a down payment on a home because you are “wasting” money on rent. Etc. Over the last 10 years I have seen this scenario no less than 100 times. And invariably, the parents are in a lot less secure position than they think they are in. So while they certainly can afford to help their adult children now, it is actually a very bad long term financial decision. 

My point? I don’t have one. Have a good day…..kidding. My point is that the easiest decision for you is often to go to your family and friends for financial assistance, but it actually is the worst thing you can do.  Create your own solutions without creating problems for others. It will hurst worse at the time, but it will be the smartest thing that you ever do.